7 P's of Marketing
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Transcript of 7 P's of Marketing
7 Ps OF SERVICE
MARKETING
MARKETING MIX FOR SERVICES
•Process
•People
•Physical Evidence
PRODUCT MIX
PRODUCT
POTENTIAL OFFER
AUGMENTED OFFER
EXPECTED OFFER
CORE PRODUCT
• McDonalds-Meal Offer
• Jet Airways with Kingfisher
• Airline ticket with comfort
waiting Area, Seat & Good
Meals
• BED IN A HOTEL FOR THE
NIGHT
QUALITY LIES IN THE EYES OF THE EYES OF BEHOLDER
PRODUCT QUALITY : RATER
RELIABILITY
RESPONSIVENESS
EMPATHY TANGIBLES
ASSURANCE
• Dependability • Delivering on Promises • Accuracy • Consistency
•Promptness •Helpfulness
• Easy access • Good Communication • Customer Understanding • Personalised Attention • Physical Evidence
• Competence • Courtesy • Credibility • Security
• Product Oriented Approach Start with Company
• Customer Oriented Approach
Co. describes what a
product represents
Co. develops products
based on its definition
Decreased likelihood of
satisfying customers
L-T misleading of
market place
PRODUCT RANGE
• Product Item
• Product Line
• Product Mix – Width – is no. of different product lines a co. is
offering
- Depth – no. of product item with in each
product line
PRODUCT FEATURES
• Intrinsic Attributes – e.g. Dentist
Diagnostic tests performed
Hours of availability
College from which degree received
• Extrinsic Attributes
Price
Brand Name
Level of Advertising
Value Added Services – e.g. Hotel
Faster Check-in
Complementary Services
Free use of Health Club
Online Foreign Exchange
Swimming Pool, etc.
• Guarantees of Services –
- Service customers do not switch brands frequently as compared to product.
- Service firm’s aim to achieve Zero Defection by providing proactive service.
- unconditional, Easy to understand, Meaningful, Easy to ivoke, Quick & easy to collect.
• Branding of Services –
FedEx – The World on time
ICICI imobile – Khayal Aapka
OBC – Where every individual is committed
Customer want promised services not payouts
TYPES OF
NEW
SERVICE
New Service
Service Improvement
Start up Business
Service Line Extensions
Style Change
New Service for currently
served Market
Major Innovations
SOURCES OF NEW IDEAS :
Internal & External
SERVICE DEVELOPMENT PROCESS
Explain & Idea Generation
Screening
Concept Lasting
Business Analysis
Service Development
Test Marketing
Commercialisation
Evaluation & Profit
PRICING
No. What You Pay (Price) What You get (Service)
1. Tuition Education
2. Interest Use of Money
3. Rent Use of living House/Office/Equipment
4. Fare Taxi Ride, Airline flight or Bus Journey
5. Fee Services of Doctor/Lawyer
6. Retainer ship Consultants’ service over a period of time
7. Toll Travel on some highway
8. Salary Services of an executive/white collar worker
9. Wages Services of Blue Collar worker
10. Commission Agent’s Services
11. Dues Membership of a Club/Union
12. Admission Theater Entry
13. Tariff Utilities
14. Premium Insurance
PRICING
SELECTING A APPROXIMATE PRICE LEVEL
Cost Oriented Pricing:
Cost Plus Pricing
Rate of return Pricing
Demand Oriented Pricing:
Discriminating Pricing
Backward Pricing
Market Penetration Pricing
Skimming Pricing
Special Adjustments to List or Quoted Price
Discounts
- Quantity
- Seasonal
- Trade
- Commission
Allowances
- Trade – in
- Promotional
Geographical Adjustments
e.g. Real Estate Agent Commission Travel Agent Commission
e.g. Single Zone Pricing Multizone Pricing
SERVICE INDUSTRY PRICING –
APPLICATIONS - TRANSPORTATION
• Type of products/materials to be transported
• Loading and handling facilities
• Accessibility at pick-up and destination
• Weight of Consignment
• Possibility of return load
• Need for high security
• Nature of Product
• Availability of transport route
• Distance
• Cross-state or Cross border customs
• Time involved
• Distance involved
PLACE
• Place or distribution is a major factor in developing a
service marketing strategy because of the inseparability
of services from the producer.
• As competition grows, the value of convenient location
becomes more important.
• The availability of electronic distribution through the
World Wide Web now provides global coverage for
travel services, banking, entertainment, and many other
information-based services.
PLACE
• LOCATION
Need of the Market
Technological Innovation
Convenience
SITUATION IMPACT
Customer-----Service Provider Have to select
Service Provider-----Customer Less important
Arm’s Length Transaction Insignificant
PLACE
• ACCESSIBILTY
to range & choice of service literature & brochures
to components such as visas, traveler cheques, insurance &
cards
to booking points
to alternative brands
to alternative agents
• CHANNELS OF DISTRIBUTION
The service provider
Intermediaries
Customers
AIRLINES
Consolidation Tour Operator
Consolidation
Affiliated with
Companies
Direct Via Home
leased System
PASSENGER
CHANNELS OF DISTRIBUTION FOR AIRLINE
SERVICES
• CHANNEL OPTIONS
Producer Consumer
Agents or Brokers
Producer Agent Consumer
Seller & Buyer Agent or Broker
Agent Consumer
Franchises and Contracted service deliveries
MAJOR INTERMEDIARIES FOR SERVICE DELIVERY
Franchises Agents Electronics
PROMOTION
PROMOTION MIX & ITS IMPORTANCE
PROMOTION MIX & ITS RELATION
All people directly or indirectly involved in the consumption of a
service are an important part of the extended marketing mix.
Knowledge Workers, Employees, Management and other
Consumers often add significant value to the total product or
service offering.
PEOPLE
Internal
Service
Quality
Employee
Satisfaction
Employee
Retention
Employee
Productivity
External
Service
Value
Customer
Satisfaction Customer
Loyalty
Revenue
Growth
Profitability
• workplace design • job design • employee selection and development • employee rewards and recognition • tools for serving customers
•Service concept: results for customers
•service designed and delivered to meet targeted customers' needs
•retention •repeat business •referral
Operating Strategy and
Service Delivery System
THE SERVICE-PROFIT CHAIN
Procedure, mechanisms and flow of activities by which services
are consumed (customer management processes) are an essential
element of the marketing strategy.
PROCESS
The ability and environment in which the service is delivered, both tangible
goods that help to communicate and perform the service and intangible
experience of existing customers and the ability of the business to relay that
customer satisfaction to potential customers.
PHYSICAL EVIDENCE
PHYSICAL EVIDENCE
Exterior Design
Signage
Parking
Landscape
Surrounding Envt.
Interior Design
Equipment
Signage
Layout
Temperature
Others:
Business Cards
Stationery
Billing Statements
Reports
Employee Dress
Brouchers
Deep sleep is more than just the right
bed. It is about an environment that
soothes all the five senses.
Experience our rooms and know how
it feels to sleep like a baby again.
Client: ITC - Welcomgroup
The campaign is successful enough to maintain its
brand as one of the best Hotels in India. The move is
infact necessary to keep attracting the tourist as
India is becoming one of the most favoured coutry
to visit.
The ad really gives the feel of the comfort and what
a Service sector should cater to. An awesome Ad,
feel like spending one night at Maurya.
ITC-Welcomgroup was the one of the first hotel
chain to recognise the specific needs of the
discerning business traveler, leading to the
development and nurturing of ITC One, Sheraton
Towers and Executive Club brands.
7 Ps
OF THE
BANKING SECTOR
PRODUCT MIX
ATM Network
7-Day Banking
Telebanking
iConnect-Internet Banking
Mobile Banking Transactions
It includes all different product lines a company offers to its customers.
SAVINGS ACCOUNT CREDIT CARDS
Rewards
Cash Withdrawl
Credit Limit Increase
24-Hour ATMs
Concession on Personal
Remittances
Overdraft Facility, etc.
PRICE MIX
It is nothing but the interest rates charged by the
different banks.
ATM Card Issue
Free – 2 ATM cards issued
free if it joint account
Add – on Card
RS. 100 – Beyond 2 cards
Duplicate Card
Rs. 100
OTHER GENERAL CHARGES
Current Account
Savings Account
Transaction Charges
NIL
NIL
Charges for issue 1
Cheque book in 3
months
NIL
NIL
Issue of duplicate
statement
Rs. 25 per page
Rs. 25 per page
Account closure
Rs.100
Rs.100
PLACE MIX
It is the location analysis for banks branches. Some of the factors
affecting the location analysis are :-
The Trade Area
Population Characteristics
Commercial Structure
Proximity to other convenient Outlets
Real Estate Rates
Proximity to Public Transportation
Location of Competition
Visibility
Access
PROMOTION MIX
It is making the customer more and more aware of the services and
benefits provided by the banks.
Different ways of promotion are :-
Public Relations
Personal Selling
Sales Promotion
Word-of-mouth Promotion
Telemarketing
Internet
PROCESS
• The process mix constitutes the overall procedure involved in using the services offered by the bank. A process should be such that the customer is easily able to understand and easy to follow.
• Let’s take for example the process for application for a car loan.
Now this mainly involves 3 things.
1. Producing of proper documents
2. Filling up of application form
3. Paying for the initial down payment.
PROCESS cont…..
The smaller and simpler the procedure, the better the process, and the customer will be more satisfied.
For example:- Banks that send out Credit Cards automatically
when their customers old one has expired again require an
efficient process to identify expiry dates and renewal. An efficient
service that replaces old credit cards will foster consumer loyalty
and confidence in the company.
PHYSICAL EVIDENCE
• Overall layout of the place i.e. how the entire bank has been designed.
• Physical evidence refers to all those factors that help make the process much easier and smoother.
• For example, in case of a bank, the physical evidence would be the placement of the customer service executive’s desk, or the location of the place for depositing cheques.
The more the bank does to make the service easier and better the more satisfied will be the customer.
• An essential ingredient to any service provision is the use of
appropriate staff and people.
• Consumers make judgments and deliver perceptions of the
service based on the employees they interact with. Staff should
have the appropriate interpersonal skills, aptitude, and service
knowledge to provide the service that consumers are paying for.
Many British organizations aim to apply for the Investors In
People accreditation, which tells consumers that staff are taken
care off by the company and they are trained to certain standards.
PEOPLE
8th P of Service Marketing
• Process
• Physical environment
• People
• Productivity &
Quality
• Product
• Place & Time
• Price
• Promotion
PRODUCTIVITY
THANK YOU………